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Determinants of wage differentials in the maquila industry in Mexico: a gender perspective

Why is there a gender wage gap in the maquila industry in Mexico?

Authors: F. Brown; L. Domínguez
Publisher: The International Working Group on Gender, Macroeconomics and International Economics , 2007

Full text of document

The off-shore industry located in the Mexico-United States border region commonly referred as the maquila industry has been highly dynamic. This paper provides a brief overview of how employment and wages have developed in the Maquila industry and presents the results of the econometric estimates and the calculation of the wage gaps.

The paper argues that, while the number of women in the maquiladora export industry is high when compared to the manufacturing sector in general, women tend to occupy the lowest wage categories. Secondly, there is a gender wage gap across different labour categories, which tends to be greater in administrative positions than on the assembly line. The study revealed an unexplained component of 42.2 percent for the managerial and administrative group, which could indicate the presence of "glass ceiling" factors.

The authors point to the need for research that analyses IME (maquila export industry) wage gaps using direct surveys of managerial and administrative staff of both sexes. In order to better grasp the role that gender plays in the labour market, it would also be beneficial to conduct these types of studies in different industries within Mexico in order to highlight differences and allow for a more comprehensive interpretation of the results.

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